Europe’s competitors commissioner Margrethe Vestager, set for a twin function within the subsequent Commission, confronted three hours of questions from members of 4 committees within the European Parliament this afternoon, as MEPs obtained their probability to interrogate her priorities for a broader legislative function that can form pan-EU digital technique for the subsequent 5 years.
As we reported final month, Vestager is headed for an expanded function within the incoming European Commission with president-elect Ursula von der Leyen choosing her as an govt VP overseeing a brand new portfolio known as “Europe fit for the digital age.”
She can also be set to retain her present job as competitors commissioner. And a query she confronted greater than as soon as throughout in the present day’s listening to in entrance of MEPs, who’ve a confirming vote on her appointment, was whether or not the mixed portfolio wasn’t liable to a battle of curiosity?
Or whether or not she “recognized the tension between objective competition enforcement and industrial policy interests in your portfolio,” as one MEP put it, earlier than asking whether or not she would “build Chinese walls” inside it to keep away from crossing the streams of enforcement and policymaking.
Vestager responded by saying it was the primary query she’d requested herself on being provided the function — earlier than laying out flat reasoning that “the independence in law enforcement is non-negotiable.”
“It has always been true that the commissioner for competition has been part of the College. And every decision we take also in competition is a collegial decision,” she stated. “What justifies that is of course that every decision is subject to not one but 2x legal scrutiny if need be. And the latest confirmation of this set up was two judgments in 2011 — where it was looked into whether this set up… is in accordance with our human rights and that has been found to be so. So the set up, as such, is as it should be.”
The commissioner and commissioner-designate responded capably to a variety of questions reflecting the broad span of her new obligations — fielding questions on areas together with digital taxation; platform energy and regulation; a inexperienced new deal; AI and information ethics; digital expertise and analysis; and small enterprise regulation and funding, in addition to queries round particular items of laws (corresponding to ePrivacy and Copyright Reform). 
Climate change and digital transformation had been singled out in her opening remarks as two of Europe’s greatest challenges — ones she stated would require each joint working and a give attention to equity.
“Europe is filled with highly skilled people, we have excellent infrastructure, fair and effective laws. Our Single Market gives European businesses the room to grow and innovate, and be the best in the world at what they do,” she stated on the high of her pitch to MEPs. “So my pledge is not to make Europe more like China, or America. My pledge is to help make Europe more like herself. To build on our own strengths and values, so our society is both strong and fair. For all Europeans.”
Building belief in digital providers
In her opening remarks Vestager stated that if confirmed she’s going to work to construct belief in digital providers — suggesting regulation on how corporations acquire, use and share information may be crucial to make sure folks’s information is used for public good, moderately than to pay attention market energy.
It’s a suggestion that received’t have gone unnoticed in Silicon Valley.
“I will work on a Digital Services Act that includes upgrading our liability and safety rules for digital platforms, services and products,” she pledged. “We may also need to regulate the way that companies collect and use and share data — so it benefits the whole of our society.”
“As global competition gets tougher we’ll need to work harder to preserve a level playing field,” she additionally warned.
But requested instantly through the listening to whether or not Europe’s response to platform energy would possibly embody breaking apart overbearing tech giants, Vestager signaled warning — saying such an intrusive intervention ought to solely be used as a final resort, and that she has an obligation to strive much less drastic measures first. (It’s a place she’s set out earlier than in public.)
“You’re right to say fines are not doing the trick and fines are not enough,” she stated in response to at least one questioner on the subject. Another MEP complained fines on tech giants are primarily simply seen as an “operating expense.”
Vestager went on to quote the Google AdSense antitrust case for example of enforcement that hasn’t succeeded as a result of it has failed to revive competitors. “Some of the things that we will of course look into is do we need even stronger remedies for competition to pick up in these markets,” she stated. “They stopped their conduct. That’s now two years in the past. The market hasn’t picked up. So what will we do in these sort of instances? We have to contemplate cures which are way more far reaching.
“Also before we reach for the very, very far reaching remedy to break up a company — we have that tool in our toolbox but obviously it is very far reaching… My obligation is to ensure that we do the least intrusive thing in order to make competition come back. And in that respect, obviously, I am willing to explore what do we need more, in competition cases, for competition to come back.”
Competition legislation enforcers in Europe must think about how to verify guidelines implement honest competitors in what Vestager described as a “new phenomenon” of “competition for a market, not just in a market” — which means that whoever wins the competitors turns into “the de facto rule setter in this market.”
Regulating platforms on transparency and equity is one thing on which European legislators have already agreed — earlier this yr. Though that platform to enterprise regulation has but to come back into drive. “But it will also be a question for us as competition law enforcers,” Vestager informed MEPs.
Making use of present antitrust legal guidelines however doing so with higher pace and agility, moderately than a drastic change of competitors method, gave the impression to be her major message — with the commissioner noting she’d not too long ago dusted off interim measures in an ongoing case in opposition to chipmaker Broadcom; the primary time such an utility has been made for 20 years.
“It’s a good reflection of the fact that we find it a very high priority to speed up what we do,” she stated, including: “There’s a limit as to how fast law enforcement can work, because we will never compromise on due process — on the other hand we should be able to work as fast as possible.”
Her responses to MEPs on platform energy favored higher regulation of digital markets (probably together with information), markets which have change into dominated by data-gobbling platforms — moderately than an abrupt smashing of the platforms themselves. So not an Elizabeth Warren “existential” risk to massive tech, then, however from a platform viewpoint Vestager’s most popular method would possibly simply sum to dying by a thousand authorized cuts.
“One of course could consider what kind of tools do we need?,” she opined, speaking about market reorganization as a way of regulating platform energy. “[There are] different ways of trying to re-organize a marketplace if the competition authority finds that the way it’s working is not beneficial for fair competition. And those are tools that can be considered in order to sort of re-organize before harm is done. Then you don’t punish because no infringement is found but you can give very direct almost orders… as to how a market should be organized.”
Artificial intelligence with a objective
On synthetic intelligence — which the present Commission has been engaged on creating a framework for moral design and utility — Vestager’s opening remarks contained a pledge to publish proposals for this framework — to “make sure artificial intelligence is used ethically, to support human decisions and not undermine them” — and to take action inside her first 100 days in workplace.
That led one MEP to query whether or not it wasn’t too formidable and hasty to hurry to manage a nonetheless rising know-how. “It is very ambitious,” she responded. “And one of many issues that I take into consideration quite a bit is in fact if we wish to construct belief then it’s important to pay attention.
“You can not simply say I’ve an excellent thought, I make it occur throughout. You must take heed to folks to determine what could be the best method right here. Also as a result of there’s a stability. Because in the event you’re creating one thing new then — precisely as you say — try to be very cautious to not over-regulate.
“For me, to fulfill these ambitions, obviously we need the feedback from the many, many businesses who have taken upon them to use the assessment list and the principles [recommended by the Commission’s HLEG on AI] of how to create AI you can trust. But I also think, to some degree, we have to listen fast. Because we have to talk with a lot of different people in order to get it right. But it is a reflection of the fact that we are in hurry. We really need to get our AI strategy off the ground and these proposals will be part of that.”
Europe might differentiate itself — and be “a world leader” — by creating “AI with a purpose,” Vestager steered, pointing to potential functions for the tech corresponding to in healthcare, transportation and combating local weather change, which she stated would additionally work to additional European values.
“I don’t think that we can be world leaders without ethical guidelines,” she stated of AI. “I think we will lose it if we just say no let’s do as they do in the rest of the world — let’s pool all the data from everyone, no matter where it comes from, and let’s just invest all our money. I think we will lose out because the AI you create because you want to serve humans. That’s a different sort of AI. This is AI with a purpose.”
On digital taxation — the place Vestager will play a strategic function, working with different commissioners — she stated her intention is to work towards attempting to realize international settlement on reforming guidelines to take account of how information and earnings stream throughout borders. But if that’s not potential she stated Europe is ready to behave alone — and shortly — by the top of 2020.
“Surprising things can happen,” she stated, discussing the problem of reaching even an EU-wide consensus on tax reform, and noting what number of items of tax laws have already been handed within the European Council by unanimity. “So it’s not undoable. The downside is we’ve a few essential items of laws that haven’t been handed.
“I’m still kind of hopeful in the working way that we can get a global agreement on digital taxation. If that is not the case, obviously we will table and push for a European solution. And I admire the Member States who’ve said we want a European or global solution, but if that isn’t to be we’re willing to do that by ourselves in order to be able to answer to all the businesses who pay their taxes.”
Vestager additionally signaled assist for exploring the potential of amending Article 116 of the Treaty on the Functioning of the EU, which pertains to competition-based distortion of the inner market, so as to allow tax reform to be handed by a professional majority, as an alternative of unanimously — as a possible technique for getting previous the EU’s personal present blocks to tax reform.
“I think definitely we should start exploring what would that entail,” she stated in response to a follow-up query. “I don’t think it’s a given that it would be successful, but it’s important that we take the different tools that the treaty gives us and use these tools if need be.”
During the listening to she additionally advocated for a extra strategic use of public procurement by the EU and Member States — to push for extra funding to enter digital analysis and enterprise innovation that advantages frequent pursuits and priorities.
“It means working together with Member States on important projects of common European interest. We will bring together entire value chains, from universities, suppliers, manufacturers all the way to those who recycle the raw material that is used in manufacturing,” she stated.
“Public procurement in Europe is… a lot of money,” she added. “And if we also use that to ask for solutions well then we can have also maybe smaller businesses to say I can actually do that. So we can make an artificial intelligence strategy that will push in all different sectors of society.”
She additionally argued that Europe’s industrial technique wants to succeed in past its personal Single Market — signaling a harder method to market entry to these outdoors the bloc.
And implying she would possibly favor much less of a free-for-all relating to entry to publicly funded information — if the worth it incorporates dangers additional entrenching already data-rich, market-dominating giants on the expense of smaller native gamers.
“As we get more and more interconnected, we are more dependent and affected by decisions made by others. Europe is the biggest trading partner of some 80 countries, including China and the U.S. So we are in a strong position to work for a level global playing field. This includes pursuing our proposal to reform the World Trade Organization. It includes giving ourselves the right tools to make sure that foreign state ownership and subsidies do not undermine fair competition in Europe,” she stated.
“We have to figure out what constitutes market power,” she went on, discussing how capability to gather information can affect market place, no matter whether or not it’s instantly linked to income. “We will broaden our insights as to how this works. We have discovered quite a bit from a few of the merger instances that we’ve been doing to see how information can work as an asset for innovation but additionally as a barrier to entry. Because in the event you don’t have the best information it’s very tough to provide the providers that individuals are really asking for. And that turns into more and more important relating to AI. Because after you have it then you are able to do much more.
“I believe we’ve to debate what we do with all of the wonderful publicly funded information that we make accessible. It’s to not be overly biblical however we shouldn’t find yourself in a scenario the place ‘those who have shall more be given.’ If you’ve gotten quite a bit already then you definately even have the capabilities and the technical perception to make excellent use of it. And we do have wonderful information in Europe. Just take into consideration what may be assessed in our supercomputers… they’re world-class… And second relating to each [EU sat-nav] Galileo and [earth observation program] Copernicus. Also right here information is on the market. Which is a superb factor for the farmer doing precision farming and saving in pesticides and seeds and all of that. But are actually blissful that we additionally make it accessible for individuals who might really pay for it themselves?
“I think that is a discussion that we will have to have — to make sure that not just the big ones keep taking for themselves but the smaller ones having a fair chance.”
Rights and wrongs
During the listening to Vestager was additionally requested whether or not she supported the controversial EU copyright reform.
She stated she helps the “compromise” achieved — arguing that the laws is essential to make sure artists are rewarded for the work they do — however confused that will probably be essential for the incoming Commission to make sure Member States’ implementations are “coherent” and that fragmentation is averted.
She additionally warned in opposition to the chance of the identical “divisive” debates being reopened afresh, by way of different items of laws.
“I think now that the copyright issue has been settled it shouldn’t be reopened in the area of the Digital Services Act,” she stated. “I think it’s important to be very careful not to do that because then we would lose speed again when it comes to actually making sure there is remuneration for those who hold copyright.”
Asked in a follow-up query how, because the directive will get carried out by EU Member States, she’s going to guarantee freedom of speech is protected against add filter applied sciences — which is what critics of the copyright reform argue the legislation successfully calls for that platforms deploy — Vestager hedged, saying: “[It] will take a lot of discussions and back and forth between Member States and Commission, probably. Also this parliament will follow this very closely. To make sure that we get an implementation in Member States that are similar.”
“One has to be very careful,” she added. “Some of the discussions that we had during the adoption of the copyright directive will come back. Because these are crucial debates. Because it’s a debate between the freedom of speech and actually protecting people who have rights. Which is completely justified… Just as we have fundamental values we also have fundamental discussions because it’s always a balancing act how to get this right.”
The commissioner additionally voiced assist for passing the ePrivacy Regulation. “It will be high priority to make sure that we’re able to pass that,” she informed MEPs, dubbing the reform an essential constructing block.
“One of the things I hope is that we don’t just always decentralize to the individual citizens,” she added.  “Now you have rights, now you just go and force them. Because I know I have rights but one of my frustrations is how to enforce them? Because I am to read page after page after page and if I’m not tired and just forget about it then I sign up anyway. And that doesn’t really make sense. We still have to do more for people to feel empowered to protect themselves.”
She was additionally requested for her views on adtech-driven microtargeting — as a conduit for disinformation campaigns and political interference — and extra broadly as so-called “surveillance capitalism.” “Are you willing to tackle adtech-driven business models as a whole?,” she was requested by one MEP. “Are you willing to take certain data exploitation practices like microtargeting completely off the table?”
Hesitating barely earlier than answering, Vestager stated: “One of the issues I’ve discovered from surveillance capitalism and these concepts is it’s not you looking Google it’s Google looking you. And that provides an excellent thought about not solely what you wish to purchase but additionally what you suppose. So we’ve certainly quite a bit to do. I’m in full settlement with what has been executed to this point — as a result of we wanted to do one thing quick. So the Code of Practice [on disinformation] is an excellent begin to ensure that we get issues proper… So I believe we’ve quite a bit to construct on.
“I don’t know but what must be the main points of the Digital Services Act. And I believe it’s essential that we profit from what we’ve since we’re in a rush. Also to take inventory of what I’d name digital residents’ rights — the GDPR [General Data Protection Regulation] — that we will have nationwide authorities implement that in full, and hopefully additionally to have a market response in order that we’ve privateness by design and with the ability to select that. Because I believe it’s essential that we additionally get a market response to say, nicely, you may really do issues in a really completely different manner than simply to permit your self to really feel pressured to enroll to no matter phrases and circumstances which are put in entrance of you.
“I myself find it very thought-provoking if you have the time just once in a while to read the T&Cs now when they are obliged, thanks to this parliament, to write in a way that you can actually understand that makes it even more scary. And very often it just makes me think, thanks but no thanks. And that of course is the other side of that coin. Yes, regulation. But also us as citizens to be much more aware of what kind of life we want to live and what kind of democracy we want to have. Because it cannot just be digital. Then I think we will lose it.”
In her personal plea to MEPs, Vestager urged them to cross the funds in order that the Commission can get on with all of the urgent duties in entrance of it. “We have proposed that we increase our investments quite a lot in order to be able to do all this kind of stuff,” she stated.
“First things first, I’m sorry to say this, we need the money. We need funding. We need the programs. We need to be able to do something so that people can see that businesses can use funds to invest in innovation, so that researchers can make their networks work all over Europe. That they get the funding actually to get there. And in that respect I hope that you will help push for the multi-annual financial framework to be in place. I don’t think that Europeans have any patience for us when it comes to these different things that we would like to be real. That is now, that is here.”